26-01-2016, 04:25 PM
APT has been trying to ramp up its Telco service, but as the fourth/fifth entrant (the other being Taiwan Star) in such a high fixed cost business, it has a considerable way to go before it can make a profit. Losses have been increasing every month in fact.
On Taiwan Exchange, you can search for the monthly operating profits. FYI, this disclosure is not required by regulators, i.e. voluntary. APT's ticker is 3682. The ROC year is 104 for year 2015.
http://mops.twse.com.tw/mops/web/t138sb02_q1
Obviously, Foxconn/APT wants to get more product offerings to bundle their service to attract consumers. The question here is ---> With such a long way to ramp before profits can be even made (if ever), how aggressive will APT be in pricing and capex? I won't be surprised if APT decides to make APTT take on more debt to expand its network aggressively. APTT is a business trust and therefore there is no minimum required distribution payout. Basically, I'm saying that I think APT's vested interest is not necessarily aligned with APTT unitholders. APT has Foxconn's backing and a lot of cash to burn, so expect this to last a long time.
Another risk is the entry of Netflix/internet TV. How long cable TV can maintain its pricing is anybody's guess.
I am not familiar with APTT, so if my comments are not accurate I welcome your corrections.
On Taiwan Exchange, you can search for the monthly operating profits. FYI, this disclosure is not required by regulators, i.e. voluntary. APT's ticker is 3682. The ROC year is 104 for year 2015.
http://mops.twse.com.tw/mops/web/t138sb02_q1
Obviously, Foxconn/APT wants to get more product offerings to bundle their service to attract consumers. The question here is ---> With such a long way to ramp before profits can be even made (if ever), how aggressive will APT be in pricing and capex? I won't be surprised if APT decides to make APTT take on more debt to expand its network aggressively. APTT is a business trust and therefore there is no minimum required distribution payout. Basically, I'm saying that I think APT's vested interest is not necessarily aligned with APTT unitholders. APT has Foxconn's backing and a lot of cash to burn, so expect this to last a long time.
Another risk is the entry of Netflix/internet TV. How long cable TV can maintain its pricing is anybody's guess.
I am not familiar with APTT, so if my comments are not accurate I welcome your corrections.